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Reborn Coffee, Inc. (REBN)
NASDAQ:REBN
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Reborn Coffee, Inc.
(NASDAQ:REBN)
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Rating:39Underperform
Price Target:
$2.00
▲(24.22% Upside)
Reborn Coffee, Inc. has a low overall stock score due to significant financial challenges, including negative profitability and cash flow, high leverage, and bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to valuation concerns.
Reborn Coffee, Inc. (REBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.86M
Dividend YieldN/A
Average Volume (3M)76.44K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth14.03%
EPS Growth4.58%
CountryUS
Employees24
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-1.15
Shares Outstanding5,967,107
10 Day Avg. Volume54,951
30 Day Avg. Volume76,435
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.85
Price to Sales (P/S)0.81
P/FCF Ratio-1.05
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue2.40
Enterprise Value/Gross Profit4.08
Enterprise Value/Ebitda-1.81
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reborn Coffee, Inc. Business Overview & Revenue Model
Company DescriptionReborn Coffee, Inc. operates and franchises retail locations and kiosks that focus on serving specialty-roasted coffee in California. The company purchases, roasts, and sells coffee, tea and other beverages, and various food items. As of September 30, 2021, it operated 7 retail locations. Reborn Coffee, Inc. was founded in 2014 and is based in Brea, California.
How the Company Makes MoneyReborn Coffee generates revenue through multiple streams, including the sale of its coffee products in retail outlets, direct-to-consumer online sales, and subscriptions for regular coffee deliveries. The company also earns money through partnerships with cafes and restaurants that carry its brand, as well as through events and workshops that promote coffee education and tasting experiences. Key factors contributing to its earnings include the growing demand for premium and ethically sourced coffee, effective marketing strategies, and a loyal customer base that values sustainability.
Reborn Coffee, Inc. Financial Statement Overview
Summary
Reborn Coffee, Inc. shows strong revenue growth but faces challenges with profitability, high leverage, and negative cash flow. The company's financial health is burdened by consistent losses and reliance on debt financing, posing significant risks.Income Statement
Reborn Coffee, Inc. has shown consistent revenue growth from $617,821 in 2019 to $5,928,533 in 2024, indicating strong top-line growth. However, the company is facing significant challenges with profitability, as evidenced by consistently negative EBIT and net income margins. This suggests operational inefficiencies or high costs that are not being offset by revenue growth.45
Neutral
Balance Sheet
The balance sheet reflects a concerning financial structure with a high debt-to-equity ratio and negative equity in earlier years, improving to positive equity in 2024. However, the debt levels remain significant relative to equity, indicating potential financial risk. The company's equity ratio is low, showing reliance on debt financing.38
Negative
Cash Flow
The company's cash flow statement highlights negative free cash flow each year, indicating that Reborn Coffee, Inc. is not generating enough cash from operations to cover its capital expenditures. This has resulted in reliance on financing activities to maintain liquidity. The operating cash flow to net income ratio is negative, further emphasizing cash flow challenges.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.57M | 5.93M | 5.51M | 3.24M | 2.28M | 793.09K |
| Gross Profit | 3.86M | 3.72M | 3.62M | 2.12M | -676.98K | -435.65K |
| EBITDA | -8.74M | -4.20M | -4.33M | -3.31M | -3.25M | -924.55K |
| Net Income | -10.03M | -4.81M | -4.73M | -3.55M | -3.44M | -1.07M |
Balance Sheet | ||||||
| Total Assets | 6.38M | 7.79M | 9.25M | 8.46M | 4.76M | 1.98M |
| Cash, Cash Equivalents and Short-Term Investments | 77.87K | 158.22K | 164.30K | 3.02M | 905.05K | 128.57K |
| Total Debt | 4.07M | 3.85M | 7.16M | 3.85M | 3.39M | 2.59M |
| Total Liabilities | 8.28M | 5.19M | 8.41M | 4.17M | 3.57M | 2.73M |
| Stockholders Equity | -1.91M | 2.60M | 846.41K | 4.29M | 1.20M | -752.40K |
Cash Flow | ||||||
| Free Cash Flow | -4.28M | -4.56M | -5.59M | -3.98M | -2.45M | -1.00M |
| Operating Cash Flow | -3.73M | -3.45M | -3.18M | -3.30M | -1.95M | -884.93K |
| Investing Cash Flow | -146.66K | -977.22K | -2.41M | -681.53K | -498.22K | -115.84K |
| Financing Cash Flow | 3.34M | 4.42M | 2.74M | 6.09M | 3.22M | 1.13M |
Reborn Coffee, Inc. Technical Analysis
Negative
1.61
Price Trends
2.27
Negative
2.52
Negative
3.01
Negative
Market Momentum
-0.20
Positive
26.27
Positive
23.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REBN, the sentiment is Negative. The current price of 1.61 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.27, and below the 200-day MA of 3.01, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 26.27 is Positive, neither overbought nor oversold. The STOCH value of 23.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REBN.
Reborn Coffee, Inc. Risk Analysis
Reborn Coffee, Inc. disclosed 51 risk factors in its most recent earnings report. Reborn Coffee, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We do not have the right to control the timing and amount of the issuance of our shares of common stock to YA Fund under the PPA and, accordingly, it is not possible to predict the actual number of shares we will issue pursuant to the PPA at any one time or in total. Q4, 2023
2.
Substantial blocks of our common stock may be sold into the market as a result of the Pre-Paid Advance Agreement. Q4, 2023
3.
We are not in compliance with the Nasdaq continued listing requirements. If we are unable to comply with the continued listing requirements of The Nasdaq Capital Market, our common stock could be delisted, which could affect our common stock's market price and liquidity and reduce our ability to raise capital. Q4, 2023
Reborn Coffee, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $14.74M | 3.51 | -1.73% | ― | 21.20% | ― | |
55 Neutral | $1.08B | 220.81 | 0.83% | ― | 17.27% | -76.53% | |
51 Neutral | $14.14M | 11.44 | 3.85% | ― | 1.84% | 12.10% | |
45 Neutral | $10.45M | -5.23 | -26.73% | ― | 1.59% | -85.85% | |
40 Underperform | $32.02M | -0.14 | ― | 198.68% | -5.26% | -44.78% | |
39 Underperform | $10.86M | -0.78 | -3145.84% | ― | 14.03% | 4.58% |
* Consumer Cyclical Sector Average
REBN
Reborn Coffee, Inc.
1.63
0.47
40.52%
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FAT
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BTBD
BT Brands
1.70
0.16
10.39%
FWRG
First Watch Restaurant Group
17.40
-2.01
-10.36%
CHSN
Chanson International Holding Class A
2.33
-492.87
-99.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.